The PS3 will play back any height divisible by 2 (which is required for 4:2:0 video anyway). There are no mod8 or mod16 restrictions on height.
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From what I understand, these formats can be played on PS3:
- MP4 (H.264 + AAC)
- AAC bitrate max ???k
- MP4 files video must be "mod 16" (divisible by 16) for H and W
Another question I have is in regards to AAC and AC3 5.1 playback. When AAC file sound is being played, does PS3 output this on optical as 5.1 uncompressed PCM or is it down-converted to Stereo PCM? Same question for AC3.